Does digital innovation help firms navigate the COVID-19 pandemic? Evidence from China

Hao Huang and Ling Zhao

Emerging Markets Review, 2024, vol. 62, issue C

Abstract: Using manually collected data, we explore the effects of digital innovation (DI) on firm resilience during the COVID-19 pandemic. The findings show that during the pandemic, firms with high levels of DI performed significantly better than others. This effect was more pronounced for firms with high exposure to COVID-19 or geographically distant supply chains. Further, mechanism analysis finds that DI mitigated the negative impact of COVID-19 by reducing internal coordination costs and improving the speed of external supply chain response. Additional analysis shows that the more firms with strong DI capabilities, the faster the economic recovery after the pandemic.

Keywords: Digital innovation; COVID-19 pandemic; Firm performance (search for similar items in EconPapers)
JEL-codes: G31 M41 O31 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:62:y:2024:i:c:s1566014124000669

DOI: 10.1016/j.ememar.2024.101171

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